Construction has commenced on a new uranium mine in the northern region of Saskatchewan. NexGen Energy Ltd. is in the process of constructing an underground uranium mine in the southern area of the Athabasca Basin, situated approximately 130 kilometers north of La Loche. The company’s investment for the construction phase is projected at $2.2 billion, making it one of the largest upcoming uranium sources globally.
During a groundbreaking ceremony held at the mine site, Premier Scott Moe, former Prime Minister Stephen Harper, as well as local leaders from Metis Nation-Saskatchewan and Member of Parliament Buckley Belanger, addressed the attendees. The initial construction activities are focused on surface infrastructure, with shaft development scheduled to commence in 2027. The current 914-meter airstrip is being extended to 1,780 meters to accommodate operational needs.
NexGen’s CEO, Leigh Curyer, reflected on the journey leading to the current milestone. He recounted the challenging beginnings in 2012, where initial drilling efforts did not yield results, prompting a temporary halt. However, in January 2014, the first drill hole uncovered significant mineralization, marking the start of what Curyer described as a pivotal energy project.
The uranium mine is anticipated to contribute to the rising global demand for electricity, as stated by Curyer. With advancements in technology and energy security concerns, nuclear energy, and consequently uranium, have emerged as crucial resources. The mine’s expected annual uranium output could reach 30 million pounds, equivalent to around 20% of the current global supply.
Following the issuance of a construction and mill license by the Canadian Nuclear Safety Commission in March, NexGen is preparing to apply for an operational license. Upon full operation, the mine is projected to generate 459 full-time positions and sustain operations for 24 years. Ongoing exploration in the vicinity indicates the potential for additional uranium deposits to be developed in the future.
Endorsements from nearby Indigenous communities, including Clearwater River Dene Nation, Birch Narrows Dene Nation, Buffalo River Dene Nation, and Métis Nation—Saskatchewan, have been secured by NexGen through benefit agreements. These agreements typically encompass commitments to local employment, training opportunities, support for indigenous-owned businesses, and financial benefits.
Premier Scott Moe emphasized the significance of resource development in Saskatchewan, highlighting the ethical and beneficial approach taken in this project. The aim is to provide sustainable energy sources for global nuclear power needs while fostering local economic growth and opportunities. Uranium mining in the province already supports over 2,300 jobs, with nearly half of the workforce residing in northern communities.
In a separate development, Denison Mines Corp. is progressing with the construction of the Phoenix uranium mine and mill site in the eastern Athabasca Basin region of Saskatchewan. Initial capital outlay for the project is estimated at $600 million, with production potentially commencing in 2028. Denison’s mine could become the first to utilize an in-situ recovery method, a technique involving the injection of an acidic solution into the ore body to extract uranium for surface retrieval.
Denison anticipates a 10-year operational lifespan for the mine, leveraging its estimated proven and probable uranium reserves of 56.7 million pounds. This initiative aligns with the broader objective of enhancing uranium production in the region to meet evolving energy demands and contribute to the global nuclear industry’s growth.